Robotic Process Automation (RPA) is on the rise. In the past three years alone, it has grown an estimated four-fold. But largely due to the slow, inefficient nature of traditional approaches to RPA process identification and mapping, only 52% of firms using RPA have expanded their digital workforce to include more than simply ten bots. To help organizations overcome the challenges of slow RPA implementation, Kryon created Full-Cycle Automation. This solution uses Kryon’s signature Process Discovery digital worker analytics tool to create a simpler, more engaging approach to the development and deployment of RPA.
But what exactly are the costs and benefits associated with Kryon Full-Cycle Automation? To answer this question, Kryon commissioned Forrester to conduct a Total Economic Impact™ (TEI) study investigating two Kryon RPA customers and their experiences with this technology.
Meet the Study Subjects
Forrester interviewed two experienced Kryon customers of different sizes and industries. Both had been using Kryon’s RPA solutions for several years before implementing Kryon Process Discovery™ approximately one year prior to the study.
- Wyndham Hotels & Resorts, a 30,000-employee organization in the Travel industry, uses attended RPA bots, which are typically used in front-office settings and are a good fit for situations where the entire end-to-end process can’t be fully automated. Wyndham Hotels & Resorts uses these bots to provide on-demand guidance as needed to its frontline staff
- LTCG, a 1,300-employee organization in the Insurance industry, uses unattended RPA bots, which can carry out batch operations that don’t require user intervention in the background. LTCG uses unattended RPA bots to increase its workforce and improve operational efficiencies
To develop a financial model that applies to both organizations’ experiences, Forrester combined characteristics from the two to create one representative composite organization. The resulting financial model presents a comprehensive cost-benefit analysis. Let’s break it down:
Why Kryon Full-Cycle Automation: Key Benefits
The two interviewed organizations experienced a variety of impressive benefits, both quantified and unquantified.
Quantified Key Benefits
Savings from Productivity
- One of the representative companies found gross annual time savings of 5,400 hours using unattended bots which were applied to a team of about 100 employees
- Forrester projects that with a similar proportion of time savings applied, the organization could save 584,730 hours over the course of 3 years if it applied these bots organization-wide (across the entire workforce of 30,000 employees.) Additionally, if these measures are taken, the organization could save an estimated $7.77 million in present terms
Forester found that unattended RPA is an incredibly useful tool to enhance organizational productivity. And with productivity comes the ability to save significant time and money, as the numbers above demonstrate. Specifically, unattended RPA is best applied to repetitive, high-volume processes such as invoice or data processing.
Time savings can make a profound impact on organizational operations. In Forrester’s interview, Wyndham’s Vice President of hotel technology and client support stated, “With manual labor it would have taken us two months to [migrate the data and onboard a newly acquisitioned hotel chain], but we leveraged many of the 100 bots we have and did it over a weekend.”
Reduced Internal Support Costs
- Organizations can see a cumulative cost reduction of $1.77 million over the course of 3 years. This assumes that the average individual support ticket costs $20.
- Kryon’s bot guidance proved itself to be effective in streamlining internal support processes. The study found that the bots’ real-time, on-screen capabilities helped to lower the number of internal help-desk support calls by a total of 50%.
Enhanced Onboarding and Training Efficiency
- The organization’s attended bot use helped to reduce training time by 40%
- As a result, this organization also was able to save $3.37 million over three years merely in training-related travel costs
When it comes to Kryon Full-Cycle Automation attended bots, the study found that this technology is typically deployed on employees’ workstations. They usually function to either help with employee performance or to lead them step-by-step through tasks. The organization discussed in the above bullet points applied attended bots to conduct the onboarding and training process for their new frontline employees. This way, new employees no longer had to attend in-person training sessions, but instead virtually experience bot-assisted training.
The organization also deployed bots to frontline workstations for “just-in-time” training. This feature takes care of additional training on the job as more unusual problems arise. This hands-on training makes for a constructive learning experience for employees and is convenient for management.
Unquantified Key Benefits
Improved Employee Experience
Initially, some employees may be wary of the idea of “robots taking over” parts of their jobs, but it’s not as scary as it might sound. The truth of the matter is that automation allows workers to exchange their most menial, repetitive tasks for other more value-added projects. These new responsibilities improve the employee experience simply by being more engaging. As a result, it is imperative to allow for open communication with employees so they’re aware of what Kryon Full-Cycle Automation can do for them specifically and can freely provide feedback.
Pro Tip: To aid this, both companies in question introduced roadshows and incentive programs for employees to get them actively involved. First, these programs educated employees on how RPA could be applied to ease their workdays. Then, the programs went a step further. They rewarded employees for their input on which processes they believed were well suited for automation. Forrester calls these initiatives a “shift towards an automation-oriented culture.” This allows employees to get creative and problem-solve the inefficiencies around them while improving the employee experience at large.
RPA doesn’t come cost-free. Before you invest in a solution, understanding the potential costs behind it is critical. To help this process, Forrester has identified two primary risk-adjusted PV costs. These costs are based on the experiences of the two companies in question:
External costs, specifically service fees, are a necessary part of a Full-Cycle Automation investment. These service fees include bot license fees and costs associated with provisioning additional servers and virtual machines for hosting the bots. These fees add up to an estimated $1.52 million over the course of three years. Forrester also projects an additional fee of $72,893 over the three years which would account for hardware costs.
If an organization’s RPA endeavor is to be successful, dedicating time to its maintenance and deployment is essential. And as the old saying goes, “time is money.” First, Forrester estimates that 64 RPA developer hours are necessary. This time goes into identifying and mapping out a process with the end-user. It also involves developing and maintaining the automation script. In addition, 30 more hours are necessary for bot maintenance and necessary updates each year going forward. The financial cost of this time devotion adds up to $1.26 million over three years, according to Forrester.
What is the Return of Investment for RPA?
Benefits and Costs Considered
With these costs in mind, you may be wondering what the true benefits of Kryon Full-Cycle Automation are at the end of the day. Fortunately, Forrester did the math for you. Given the customer interviews and the financial analysis that followed, Forrester has found that an organization that is based on the studied organizations [having invested in Full-Cycle Automation] would enjoy the benefits of $12.9 million over the course of three years. At the same time, it would also incur a cost of $2.9 million. Considering these benefits and costs together, the organization would see:
- A net present value (NPV) of $10 million dollars
- A return on investment (ROI) of 352%
The “Before and After” of Kryon Full-Cycle Automation
Again, both interviewed organizations deployed Full-Cycle Automation after several years of using Kryon RPA solutions. As a result, we have enough information to understand the difference made by upgrading from standard Kryon RPA to Kryon Full-Cycle Automation. In examining the value of Kryon Process Discovery coupled with Kryon’s RPA platform, Forrester uncovered these powerful outcomes for organizations:
- The ability to identify and automate 75% more processes with unattended RPA
- 80% reduction in time spent on identifying and mapping individual processes
- 50% reduction in time spent on developing each automation process
- 50% reduction in time spent maintaining bots
- Attain a 352% ROI vs. 220% in the RPA-only scenario
For Forrester’s full report on the cost savings and benefits of Kryon Full-Cycle Automation, download the complete study here.